C/F/99. Distinct features of securitization in Germany

This paper is dedicated to the analysis of a securitization process in Germany. It goes without saying that securitization has played an important role in improving liquidity and increasing the number of debt instruments in the Western capital markets. However, there exist substantial differences in the way securitization is employed due to economic and legislative traditions. The case of Germany is of great interest in this respect. The author thoroughly investigates how securitization is defined, what the key process and rationale are, and what peculiarities of the financial structure are pronounced in Germany. Besides, substantial attention is paid to the benefits and threats of securitization as well as to the most common securitization risks in Germany. Finally, legal structure and regulatory constraints are scrutinized. This paper would be a valuable source of knowledge for those who study practical aspects of securitization internationally.